Eternal Ltd, formerly Zomato Ltd, reported a robust Q3 FY26 performance, with consolidated operating revenue rising sharply to ₹16,315 crore from ₹5,405 crore a year earlier. The company’s results were driven by rapid scale-up across quick commerce, food delivery and B2B supplies, and reflected improving unit economics despite higher operating spend.
Quick commerce drives top-line expansion
The quick commerce vertical, led by Blinkit, was the principal growth engine in the quarter. Revenue from this business surged to ₹12,256 crore in Q3 FY26 from ₹1,399 crore in Q3 FY25, as Eternal shifted toward an inventory-led model. That approach improved assortment control, shortened fulfilment times and raised average order values.
Aggressive store expansion and deeper urban penetration supported the rise, positioning Eternal to capture more of India’s rapidly growing instant-delivery market.
Food delivery and B2B supply show steady gains
Eternal’s core food delivery segment recorded near 29% year‑on‑year revenue growth to ₹2,676 crore, helped by sustained order volumes, platform enhancements and closer engagement with restaurant partners in major cities.
Hyperpure, the company’s B2B arm supplying ingredients and kitchen essentials to restaurants, posted moderate growth of about 7% year‑on‑year, indicating steady demand from partner kitchens amid competitive conditions.
Including other segments and non‑operating income, consolidated revenue for the quarter was reported at ₹16,663 crore, signalling a materially higher annual revenue run‑rate for the company.
Profitability and cost dynamics
Net profit rose 54% year‑on‑year to ₹102 crore in Q3 FY26, up from ₹59 crore in Q3 FY25. The improvement reflected better operational efficiency and scale benefits that allowed revenue to expand faster than costs.
However, operating expenses increased in line with the expansion. Material costs rose to ₹9,801 crore as inventory‑led quick commerce scaled up. Delivery costs increased 64%, and advertising and marketing spend nearly doubled amid heightened customer acquisition efforts. Employee benefit expenses grew 33% to ₹914 crore as the workforce expanded to support operations.
Despite these cost pressures, Eternal sustained profitability, indicating improved unit economics and more effective cost absorption as volumes rose.
Leadership transition and market outlook
The company announced a leadership change effective 1 February 2026: founder Deepinder Goyal will move to the role of Vice Chairman. The shift is intended to free him to focus on long‑term strategy and innovation while the existing management team continues to run day‑to‑day operations.
Investor sentiment remains constructive following the quarterly results, with market participants watching execution in quick commerce, food delivery and adjacent consumer services. With revenues rising rapidly and margins holding up, Eternal is positioned to consolidate its presence in India’s competitive consumer internet sector.
